ISLAMABAD: According to official data released on Thursday, the country’s exports decreased for the third month in a row, decreasing slightly by 0.63 percent to $2.37 billion in November.
Exports decreased for the second month in a row, falling 18.3 percent from $2.9 billion a year earlier.
Conversely, imports rose 11.3pc to $5.25bn in November contrasted with October, meaning a month-to-month import/export imbalance of $2.88bn.
However, imports were 33.6 percent lower than November 2021’s $7.89 billion, resulting in a 42.5 percent decrease in the annual trade gap.
Exports fell 3.5 percent to $11.93 billion in the first five months of the current fiscal year, from July to November, from $12.36 billion in the same period last year. The decrease indicates that the government would have difficulty meeting the export goal this fiscal year.
Compared to the same time last year, imports decreased by 20% to $26.34 billion. Between July and November, the trade deficit also fell 30 percent to $14.406 billion.
According to exporters, the fluctuation of the exchange rate was one of the primary factors in the decline in exports. The export industry has also faced liquidity issues as a result of the government’s decision to end duty drawbacks on local taxes and levies.
The Commerce Ministry did not issue a formal statement to explain the decline in export proceeds. Since taking on responsibility for the ministry, Commerce Minister Naveed Qamar has frequently traveled abroad.
Pakistan not only met its export goal in the previous fiscal year (2021-2022), but it also broke through the psychological barrier of $30 billion. Proceeds increased by 26.6 percent to $31.85 billion from $25.16 billion the year before.
However, the import bill increased by 43 percent to $80 billion in 2021-2022, up from $56.12 billion a year earlier.
Another factor that contributed to the decline in exports from the nation was the non-payment of sales tax refunds. The decline in exports can be attributed to a variety of factors. As a result of high inflation, retail sales have decreased. As a result, retailers around the world keep a lot of stock.
As per the money service’s month-to-month viewpoint for November, drowsy unfamiliar interest and homegrown stockpile issues, following the floods-actuated annihilation of exportable yields, are liable for the frail commodity execution. However, it is anticipated that exports will improve in the coming months as a result of the government’s recently announced targeted export-stimulating policies.
It was noted, however, that if the economic conditions in the primary export markets remained volatile and uncertain, these dynamics might be hindered.